Loss of housing wealth massive: $85,000 per avg homeowner in 2008

[Liberal_in_LA]

http://latimesblogs.latimes.com/laland/2008/04/disappearing-no.html

A Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner $85,000 in lost wealth this year alone.

[slackmaster]

1. Bad news for someone who bought within the last year or two and needs equity credit or plans to sell

Good news for people who will be in a position to buy in teh next year or two.

[El Pinko]

2. in the case of homeowners who bought before the bubble, the "loss of wealth" is pure theory.

They never had the wealth to begin with. Speculation-fueled bubble equity only counts for something if you actually sell at the peak of the bubble. Otherwise, it never really existed in the first place.

[Warpy]

8. Exactly. You only had the profit if you sold at the peak

Otherwise, you have what you always had, a home.

Unfortunately, the psychology of this thing is to make people feel poor when their paper worth declines. As long as their net worth is in positive numbers, they're in good shape. It's only when debt exceeds assets that real trouble arises.

[glowing]

3. I know I'm not gaining anything but a home at this point.. but I do not

look at my home as an ATM.. it is a place where our family lives, sleeps, shares, cooks, gardens and lives. Some people love to have apt style places and others prefer a home and still others prefer a tent and some prefer a farm/ acreage. I will care though when and if it is necessary to sell my home. I def don't want a negative valuation.

[mainegreen]

4. Nothing is lost or gained on an investment until it is sold. n/t

[lonestarnot]

6. And for people who would like to control their wealth through equity borrowing. LOL

[NashVegas]

5. $85k Of OVER-INFLATED BUBBLE WEALTH! *poof*

[leftofthedial]

7. what has been the average middle class loss of net worth since the coup of 2000?

unbelievable

[mulsh]

9. we bought before the bubble, when prices doubles in 6 mos

friends & relatives thought I was stupid because I wasn't ecstatically bragging about my financial prowess. They thought I was "short sighted" & "didn't understand economics" when I pointed out that prices in other, more desirable areas were also doubling & in general I thought this was a bad omen. Now that prices are tumbling I'm still not gleefully reveling in my business savvy. I feel very sorry for the folks who've been hood winked by MBA fueled Ponzi schemes.

and gee, can any one recall any other administration where trillions of dollars have vaporised twice in under 8 years?